Recent Quota and Governance Reforms at the International Monetary Fund

Abstract

This article discusses the significant quota and governance reforms recently undertaken at the International Monetary Fund (the “IMF”), which is the international financial institution at the center of the global financial system, over the past few years. The IMF approved two ad hoc quota increases (2006 and 2008), completed one periodic quota review with a doubling of quotas (2010), and approved two amendments to its charter related to quota and governance (2008 and 2010) setting out major changes to the IMF’s governance structure. Considering the widespread consensus that is necessary to achieve reform in this crucial area, the reforms are remarkable in their extent and dimension. This is particularly pronounced when comparing the degree and extent of IMF quota and governance reform to other international organizations and the fact that, at the same time, the IMF has been at the center of resolving the global financial crisis.